
/f/f 





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LAWS OF NEW JERSEY, 1919 



CHAPTER 80. 



An Act to amend "An act to establish a thorough and efficient 
system of free public schools, and to provide for the mainte- 
nance, support and management thereof," approved October 
nineteenth, one thousand nine hundred and three. 

Approved April 10th, 1919. 



CHAPTER 81. 

An Act to amend "An act to amend an act entitled 'An act to 
establish a thorough and efficient system of free public schools, 
and to provide for the maintenance, support and management 
thereof/ approved October nineteenth, one thousand nine hun- 
dred and three," approved May seventh, one thousand nine 
hundred and seven. 

Approved April 10th, 1919. 



TRENTON, N. J. 
MacCrellish & Quiglev Co., State Printers 

1919 






Pierson 
Teachers' Retirement Fund Law 



CHAPTER 80, LAWS OF 1919. 

An Act to amend "An act to establish a thorough and efficient 
system of free public schools, and to provide for the mainte- 
nance, support and management thereof," approved October 
nineteenth, one thousand nine hundred and three. 

Be it Enacted by the Senate and General Assembly 
of the State of New Jersey: 

PREAMBLE. 

Whereas, In the advancement of public policy there Preamble. 
has been established in this State a retirement fund 
to which public school teachers are required to con- 
tribute and which was designed to provide an an- 
nuity to any member disabled after twenty or more 
years of service, and the State has provided a non- 
contributory pension for any teacher who teaches 
thirty-five years ; and 

Whereas, After two years of investigation conducted Preamble, 
with the assistance of pension experts and actuaries 
employed by it, the Pension and Retirement Fund 
Commission created by the act of the Legislature, 
J. R. ii, P. L. 1917, and J. R. 3, P. L. 1918, has 
found that the two retirement systems conflict with 
each other in their operation and thereby create em- 
barrassment in the administration of school affairs, 
and in many instances give double retirement benefits 
to the teachers, amounting on an average to more 
than the salary received by the teachers when in 
active service; and 

Whereas, The actuary employed by the State Teachers' Preamble. 
Association and the actuary of the commission both 
report that the liabilities of the Teachers' Retirement 
Fund are far in excess of its present and prospective 
assets, which indicates that the contributions of pres- 



Preamble. 



Preamble. 



Article 

XXVIII addec: 
to school law. 



ent teachers are being used for the payment of an- 
nuities to teachers now retired, thereby exhausting the 
funds which should be kept in reserve for the benefit 
of present teachers, with the result that a majority of 
those now contributing will be unable to receive the 
benefits promised under the fund ; and 
Whereas, Inasmuch as the State of New Jersey by 
legislative enactment has compelled its teachers to 
contribute to this fund which is in an unsound finan- 
cial condition, it is the duty of the Legislature to cor- 
rect as far as possible the injustice and embarrassment 
occasioned by such conditions, which are detrimental 
to the welfare of the teachers and the school system ; 
and 
Whereas, It is recognized as an established State policy 
that the teachers of our public schools should be given 
protection against disability and old age and that 
such protection should be provided by a retirement 
system established on a scientific basis that will truly 
advance the best interests of our educational system 
and protect the future well being of the teachers; 
therefore, 

I. The act to which this act is an amendment is 
hereby amended by the addition of a new article, which 
shall be known as Article XXVIII, and which shall con- 
tain sections 247 to 256, inclusive. 



Definitions 
of sundry 
terms. 



Article XXVIII. 

teachers' pension an annuity eund. 

deeinitions. 

247. (1) The following words and phrases used in 
this act shall have the following meanings unless a dif- 
ferent meaning is plainly required by the context : 

(2) "Retirement System," shall mean the "Teachers' 
Pension and Annuity Fund," created by section two 
hundred and forty-eight of this article. 

(3) "Teachers' Retirement Fund" shall mean the 
Teachers' Retirement Fund of the State of New Jersey 
as created by chapter 32, P. L. 1896; chapter 178, P. 



n. 



of p # 



19/9 



L. 1899; chapter 96, P. L. 1900; chapter 36, P. L. 
1902; chapter 1, Second Special Session P. Iy. 1903; 
chapter 95, P. L. 1905; chapter 314, P. L. 1906; chap- 
ter 139, P. L- 1907, and amendments thereto and sup- 
plements thereof. 

(4) "Board of Trustees" shall mean the board pro- 
vided for in section two hundred and fifty-five of this 
article. 

(5) "Commissioner of Education" shall mean the 
Commissioner of Education of the State of New Jersey. 

(6) "Employer" shall mean the State of New Jersey, 
or the school district, normal school district, board or 
other agency of and within the State by which the 
teacher is paid. 

(7) "Teacher" shall mean any regular teacher, Jeacher 
special teacher, helping teacher, teacher-clerk, principal, 
vice-principal, supervisor, supervising principal, director, 
superintendent, city superintendent, assistant city super- 
intendent, county superintendent, State commissioner or 
assistant commissioner of education and other member 

of the teaching or professional staff of any class, public 
school, high school, normal school, model school, train- 
ing school, vocational school, truant reformatory school, 
or parental school, and of any and all classes or schools 
within the State of New Jersey conducted under the 
order and superintendence, and wholly or partly at the 
expense of the State Board of Education, of a duly 
elected or appointed board of education, board of school 
directors, or board of trustees of the State or of any 
school district or normal school district thereof, and 
any such person under contract or engagement to per- 
form one or more of these functions; provided, that Proviso. 
no person shall be deemed a teacher within the meaning 
of this article who is a substitute teacher or is a teacher 
not regularly engaged in performing one or more of 
these functions as a full-time occupation outside of 
vacation periods. In all cases of doubt the board of 
trustees shall determine whether any person is a teacher 
as defined in this article. 

(8) "Present-entrant" shall mean any teacher who 
is a member of the retirement system under the pro- 



visions of class B, C, D and E under sub-section (2) 
of section two hundred and forty-nine of this article. 

(9) "New-entrant" shall mean any teacher who is 
a member of the retirement system, except a present 
entrant. 

(10) "Contributor" shall mean any person who has 
an account in the annuity savings fund. 

(11) "Beneficiary" shall mean any person in receipt 
of a retirement allowance or other benefit as provided 
in this article. 

(;i2) "School Service" shall mean any service as a 
teacher as defined by sub-section (7) of this section. 

(13) "School Year" shall mean the official school 
year of the school district or the institution in which a 
teacher is employed. 

(14) "Regular Interest" shall mean interest at four 
per centum per annum, compounded annually. 

(15) "Accumulated Deductions" shall mean the total 
of the amounts deducted from the salary of a con- 
tributor and credited to his individual account in the 
annuity savings fund together with the interest thereon. 
Regular interest shall be computed and allowed on such 
total or part thereof when used for the purchase from 
the retirement system of a retirement annuity. Interest 
at the rate of three and one-half per centum per annum, 
compounded annually, shall be computed and paid on 
such total amounts or part thereof when withdrawn for 
any other purpose. 

(16) "School Apportionment Fund" shall mean the 
moneys retained in the State Treasury to be appor- 
tioned to the several counties of the State by the Comp- 
troller for school purposes, as defined in chapter 146, 
P. h. 1906, and chapter 65, P. U. 1909. 

(17) "Average Salary" shall mean the average 
annual salary earnable by and as a teacher for the last 
five years preceding retirement. 

(18) "Pension" shall mean annual payments for life 
derived from the pension fund or from the pension 
reserve fund as provided in this article. All pensions 
shall be paid in monthly installments. 

(19) "Annuity" shall mean payments for life de- 
rived from contributions made by a contributor as pro- 



vided in this article. All annuities shall be paid in 
monthly installments. 

(20) "Retirement Allowance" shall mean the pen- 
sion plus the annuity. 

(21) "Pension Reserve" shall mean the present value 
computed on the basis of such mortality tables as shall 
be adopted by the board of trustees, with regular in- 
terest of the future payments to be made on account of 
any pension granted to a member. 

(22) "Annuity Reserve" shall mean the present 
value computed on the basis of such mortality tables as 
shall be adopted by the board of trustees with regular 
interest of the future payments to be made on account 
of any annuity granted to a member. 

ESTABLISHMENT OE SYSTEM. 

■ 248. (1)" A retirement system for public school Retirement 
teachers is hereby created and established to be known created. 
as the "Teachers' Pension and Annuity Fund," and 
shall include the several funds created and placed under 
the management of the board of trustees as provided Management. 
by this article for the purpose of paying retirement 
allowances and other benefits hereinafter provided to or 
on account of the teachers who become members of said 
system. 

(2) The retirement system so created shall have the Powers and 
powers and privileges of a corporation, and under its 
corporate name all its business shall be transacted, all 
funds invested, all warrants for money drawn and pay- 
ments made, and all cash and securities and other prop- 
erty shall be held. 

MEMBERSHIP. 

249. ( 1 ) Membership in the retirement system shall Membership 
begin not earlier than the first day of September, nine- 
teen hundred and nineteen. 

(2) The membership of the retirement system shall classes of 
consist of the following classes of teachers : 

Class A. All persons who become teachers after the Class a. 
first day of September, nineteen hundred and nineteen, 



6 

and whose appointment is made subsequent to the pas- 
sage of this act, shall become members of the retirement 

proviso. system by virtue of their appointment as teacher; pro- 

vided, that any person who may become a teacher after 
September first, nineteen hundred and nineteen, who 
before the passage of this act shall have made an agree- 
ment to teach in the schools of this State as a consider- 
ation for the instruction received in any normal school 
of the State shall not be compelled during the life of 
such agreement to become a member of the retirement 
system when he shall enter the service as a teacher, but 
shall, however, become a member after the expiration 
of such agreement by virtue of any subsequent appoint- 
ment as teacher, but he may become a member at any 
time by filing an application as hereinafter described; 

Proviso. provided, further,, that any person who shall have 

signed a contract for the position of a teacher prior to 
the passage of this act, whose services thus contracted 
for shall extend beyond the first day of September, nine- 
teen hundred and nineteen, shall not be compelled to 
become a member of the retirement system when he 
shall enter the service under such contract as a teacher, 
but he may do so by filing an application as hereinafter 
described. 

ciass b. Class B. All teachers in the service on September 

first, nineteen hundred and nineteen, who are not mem- 
bers of the Teachers' Retirement Fund at the time of 
the passage of this act, who, during their service as a 
teacher on or before the first day of September, nine- 
teen hundred and twenty, shall file with the board of 
trustees an application for membership. 

Class c - Class C. All teachers in the service on September 

first, nineteen hundred and nineteen, who became mem- 
bers of the Teachers' Retirement Fund by virtue of 
their appointment as teacher since January first, nine- 
teen hundred and eight, who during their service as a 
teacher on or before the first day of September, nine- 
teen hundred and twenty, shall file with the board of 
trustees an application for membership. 

ciass d. Class D. All teachers in the service on September 

first, nineteen hundred and nineteen, who became mem- 



bers of the Teachers' Retirement Fund before the first 
day of January, nineteen hundred and eight, and who 
during their service as a teacher on or before the first 
day of September, nineteen hundred and twenty, shall 
file with the board of trustees an application for mem- 
bership. 

Class E. All teachers, who do not come under the 
provisions of class A, B, C or D, who within a year after 
their appointment or after the passage of this act, shall 
file with the board of trustees an application for mem- 
bership. 

(3) Application for membership under class B, C, 
D and E, and the certificate of enrollment in case of 
class A member, shall be in such form and contain such 
information as the board of trustees shall designate, and 
furthermore, the application for membership in case 
of class C, D and E shall contain a waiver of all rights 
and privileges as a member or prospective beneficiary of 
the Teachers' Retirement Fund. 

The board of trustees shall file one copy of the appli- 
cation for membership or certificate of enrollment in 
the retirement system as a permanent record in its office, 
and one copy with the employer of the applicant, which 
shall constitute a notice to such employer to deduct the 
percentage of salary as defined by this article. 

(4) The board of trustees may, in its discretion, 
extend the period for filing any application for mem- 
bership provided for herein, but no extension shall carry 
the date beyond the year nineteen hundred and twenty- 
three. 

(5) Any teacher who does not elect to become a 
member while eligible to membership under the pro- 
visions as to class B, C, D or E, and who is not eligible 
to membership under the provisions as to class A, may 
become a member thereafter upon application in ac- 
cordance with the rules and regulations of the board 
of trustees, but with a limited allowance for prior serv- 
ice as hereinafter provided for new-entrants. 

(6) This board of trustees may, in its discretion, 
deny the right to become members to any class of 
teachers whose compensation is only partly paid by the 
State, or who are serving on a temporary or any other 



Class E. 



A]. plication. 



Waiver. 



Copies of 

application 

filed. 



Time for 

application 

extended. 



As to future 
applications. 



Right may 
be denied. 



8 



Absence to 
forfeit mem- 
bership. 



than a per annum basis, and it may also, in its discre- 
tion, make optional with members in any such class their 
individual entrance into membership, 

(7) The membership of any person in the retirement 
system shall cease if he shall be continuously absent 
without pay for a period of more than two years, or if 
in any five-year period after he last became a member, 
he shall render less than two years of school-service, or 
upon the withdrawal by a contributor of his accumu- 
lated deductions as provided in this article or upon re- 
tirement on a pension, or at death but not otherwise, 
except as provided in this article. 



Service of 
present- 
entrant. 



Service of 
new-entrant. 



Year's service 
fixed. 



Statement 
verified. 



SERVICE CREDITABLE. 

250. (1) In addition to the application required in 
sub-section (3) of section two hundred and forty-nine 
of this article each present-entrant shall file a detailed 
statement under oath of all school-service and service in 
a similar capacity in other States rendered by him prior 
to the first day of September, nineteen hundred and nine- 
teen, for which he claims credit, and of such other facts 
as the board of trustees may require for the proper 
operation of the retirement system. 

(2) Each new-entrant shall file a detailed statement 
of school-service and service in a simlar capacity in 
other States rendered by him prior to so becoming a 
member for which he desires credit and on account of 
which he desires to contribute and of such other facts 
as the board of trustees may require for the proper 
operation of the system. 

(3) The board of trustees shall fix and determine by 
appropriate rules and regulations how much service in 
any year is the equivalent of a year of service, but in 
computing such service, or in computing average com- 
pensation, it shall credit no time during which a mem- 
ber was absent without pay for a period of more than 
a month's duration, nor shall more than one year of 
service be credited for all service in any calendar year. 

(4) Subject to the above restrictions and to such 
other rules and regulations as the board of trustees shall 
adopt, said board shall verify as soon as practicable the 



9 



statement of service submitted, and shall issue to the 
member a prior-service certificate certifying to the ag- 
gregate length of such prior service. 

( 5 ) In such prior-service certificate, a present-entrant 
shall be credited up to the nearest number of years and 
months with all service not exceeding thirty-five years, 
which he rendered as a teacher prior to September first, 
nineteen hundred and nineteen, including not more than 
ten years of service in a similar capacity in other States. 

(6) In his prior-service certificate, a new-entrant 
shall be credited in full up to the nearest number of 
years and months, but not exceeding ten years, with all 
service rendered by him as a teacher in public schools 
in or outside of New Jersey prior to becoming a mem- 
ber, for which he desires credit and on account of which 
he desires to contribute. 

(7) So long as membership continues, a prior-service 
certificate shall be final and conclusive for retirement 
purpose as to such service, unless thereafter modified 
by the board of trustees upon the application made by 
the member within one year after the date of issuance 
or modification of a prior-service certificate or upon the 
discovery by the board of trustees of an error or fraud. 
When membership ceases, such certificate shall be void, 
but upon membership being resumed the prior-service 
certificate shall be restored for the same number of 
years of prior service as were previously credited less a 
deduction of one year for each year during which the 
teacher was not a member of the retirement system 
since the issuance of the initial prior-service certificate. 

(8) At retirement the total service credited a mem- 
ber shall consist of the service rendered by him during 
his membership, and if he has a prior-service certificate 
which is in full force and effect, for all service certified 
on such certificate. 



Prior-service 
credits of 
present- 
entrant. 



Prior service 
of new- 
entrant. 



Prior-service 

certificate 

final. 



Restoration 
to membership. 



Total service. 



BENEFITS. 



Superannuation Retirement. 

251. (1) A member who has attained the age of 
sixty-two (62) may retire upon his request or, upon the 
request of his employer, shall be retired from the service 



Retirement at 
62 years. 



10 



Retirement 
at 70 years. 



Allowance to 
present- 
entrant: 



Annuity; 



Pension; 



Further pen- 
sion; 



Further 

additional 

pension. 



if a written statement duly attested is filed by him or 
by his employer with the board of trustees setting forth 
at what time subsequent to the execution and filing 
thereof he or his employer desires such retirement. The 
board of trustees shall retire said member at the time 
specified or at such other time within thirty days after 
the date so specified as the board of trustees may find 
advisable. Any present-entrant who is not covered by 
the tenure of office law who prior to the first day of 
November, one thousand nine hundred and nineteen, 
shall become a member of the retirement system, and 
who shall be credited in his prior-service certificate with 
thirty-five or more years of service, who shall lose his 
position before attaining the age of sixty- two (62) 
years, shall be retired on a total retirement allowance of 
one-half of his average salary. 

(2) After the first day of January of the year nine- 
teen hundred and twenty-six, each and every member 
who has attained or shall attain the age of seventy (70) 
shall be retired by the board of trustees from the service 
forthwith, or at such time within a year thereafter as 
it shall deem advisable. 

(3) Upon superannuation retirement a present-en- 
trant shall receive a retirement allowance which shall 
consist of : 

(a) An annuity which shall be the actuarial equiva- 
lent of his accumulated deductions at the time of his 
retirement, 

(b) A pension in addition to the annuity, of one one- 
hundred and fortieth (i/i40th) of his average salary 
multiplied by the number of years of service he has 
rendered since he became a member, 

(c) A further pension of one seventieth (i/7oth) of 
his average salary multiplied by the number of years of 
service certified on his prior-service certificate, 

(d) And if such person shall have been a member of 
the Teachers' Retirement Fund prior to his becoming 
a member of the retirement system, a further addi- 
tional pension which shall be the actuarial equivalent of 
the contributions without interest, which he paid to the 
Teachers' Retirement Fund prior to the first day of 



II 



September, nineteen hundred and nineteen, which he 
has not otherwise received. 

(4) Upon superannuation retirement a new-entrant 
shall receive a retirement allowance which shall consist 
of: 

(a) An annuity which shall be the actuarial equiva- 
lent of his accumulated deductions at the time of his 
retirement, and 

(b) A pension, in addition to the annuity, of one one 
hundred and fortieth (1/ 140th) of his average salary 
multiplied by the number of years of his total service. 

( 5 ) The total retirement allowance granted to a per- 
son with twenty or more years of service who has at- 
tained the age of sixty-two (62) shall in no case be less 
than four hundred dollars per annum. 

Disability Retirement. 

(6) Retirement for disability of a teacher who is a 
member shall be made by the board of trustees upon the 
application of his employer or upon his own applica- 
tion or that of a person acting in his behalf, on a disa- 
bility allowance if he is under the age of sixty- two (62) 
years, provided the board of trustees, after a medical 
examination of said member, made at the place of his 
residence within the State or other place mutually agreed 
upon, by a physician or physicians designated by said 
board, shall determine upon the basis of a report sub- 
mitted by said physician or physicians that the said 
member is physically or mentally incapacitated for the 
performance of duty and that said member ought to be 
retired ; and further provided, that the said member has 
rendered ten years of service as a teacher in New Jersey, 
and if he is a new-entrant, has also been a member of 
the retirement system for ten years. 

Should the applicant for a disability retirement be 
dissatisfied with the decision of the board of trustees, 
appeal may be made to the State Board of Education 
and the decision of the latter shall be final and binding 
upon all parties. 

(7) On retirement for disability, a teacher who is a 
member shall receive a retirement allowance which shall 
consist of : 



Allowance to 
new-entrant : 



Annuity; 



Pension. 



Minimum 
allowance. 



Retirement 
for disability. 



Proviso. 



Right of 
appeal. 



Retirement 
allowance for 
disability: 



12 



Pension; 



Further 
pension. 



Annuity; ( a ) An annuity which shall be the actuarial equiva- 

lent of his accumulated deductions at the time of his 
retirement ; 

(b) A pension which together with his annuity pro- 
vided under the paragraph immediately preceding shall 
be sufficient to produce a retirement allowance of one- 
seventieth of his average salary multiplied by the num- 
ber of years of his total service but not less than three 
hundred dollars per annum or thirty per centum of said 
average salary, with the exception that in no case shall 
the allowance exceed nine-tenths of the rate' of retire- 
ment allowance to which he might have been entitled 
had retirement been deferred until the age of sixty- two 

(62). 

(c) And if such person shall have been a member of 
the Teachers' Retirement Fund prior to his becoming 
a member of the retirement system, a further addi- 
tional pension, which shall be the actuarial equivalent 
of the contributions without interest, which he paid to 
the Teachers' Retirement Fund prior to the first day of 
September, nineteen hundred and nineteen, which he 
has not otherwise received. 

Lxaminition of (^) O nce eac h y ear during the first five years follow- 
teacher retired ing the retirement of the teacher on a disability allow- 
ance and once in every three-year period thereafter, the 
board of trustees may, and upon his application shall, 
require any disability beneficiary who is under the age 
of sixty-two (62) years to undergo medical examina- 
tion by a physician or physicians designated by the board 
of trustees, said examination to be made at the place of 
residence of said beneficiary or other place mutually 
agreed upon. Should such physician or physicians there- 
upon report and certify to the board of trustees that 
such disability beneficiary is not totally incapacitated 
either physically or mentally for the performance of 
duty and that such disability beneficiary is engaged in 
or is able to engage in a gainful occupation and should 
the board of trustees concur in such report, then the 
amount of his retirement allowance shall be reduced to 
an amount which, when added to the amount then 
earned by him shall not exceed the amount of his aver- 



If found able 
to work. 



13 



age salary. Should his earning capacity be later ^hangeof 
changed, then the amount of his retirement allowance 
may be further altered; provided, that the new retire- Proviso, 
ment allowance shall not exceed the amount of the 
retirement allowance originally granted or an amount 
which when added to the amount earned by the bene- 
ficiary, exceeds the amount of his average salary. 
Should a disability beneficiary who is under the age of J^£ sal t0 
sixty-two (62) years refuse to engage in a gainful 
occupation when qualified so to do and further refuses 
a position in the public schools offered to him, the board 
of trustees may reduce his retirement allowance to half 
of its former rate. 

(9) Should any disability beneficiary, under the age Refusal to 
of sixty-two (62) years, refuse to submit to a medical 
examination as provided under the subsection imme- 
diately preceding, his retirement allowance may be dis- 
continued until his withdrawal of such refusal, and 
should such refusal continue for one year, all his rights 

in and to such retirement allowance may be forfeited. 

(10) Should a disability beneficiary be restored to Restoration 
active service at a salary equal to that formerly received, 
his retirement allowance shall cease and he shall again 
become a member of the retirement system, and his 
annuity reserve shall be transferred from the annuity 
reserve fund to the annuity savings fund and credited 
to his individual account as a part of his accumulated 
deductions in the latter fund, and he shall contribute to 
the said fund thereafter in the same manner and at the 
same rate as he paid upon his disability. Upon his 
restoration to active service his pension reserve in the 
pension reserve fund shall be transferred to the pension 
accumulation fund. His prior-service certificate on the 
basis of which his service was computed at the time of 
his retirement shall be renewed and shall again be in full 
force and effect, and in addition upon his subsequent 
retirement he shall be credited with all his service as a 
member subsequent to the period covered by his prior- 
service certificate, anything to the contrary in this act 
nothwithstanding. 



to service. 



14 



Paid accumu- 
lated deduc- 
tions. 



Withholding 
deductions. 



Dying before 
retirement. 



Exercise 
option at 
retirement : 



Option 



Option 2; 



Withdrawal and Death Benefits. 

(11) A contributor who withdraws from service or 
ceases to be a teacher for any cause other than death 
or retirement, shall be paid on demand the accumulated 
deductions standing to the credit of his individual ac- 
count in the annuity savings fund. 

(12) The board of trustees may, in its discretion, 
withhold for not more than one year after a member 
last rendered school-service all or part of his accumu- 
lated deductions, if, before he last became a member, 
he withdrew from the annuity savings fund all or part 
of his accumulated deductions and failed to redeposit 
such withdrawn amount to the credit of his individual 
account in such fund. 

(13) Should a contributor die before retirement his 
accumulated deductions shall be paid to his estate or to 
such person having an insurable interest in his life as 
he shall have nominated by written designation duly 
executed and filed with the board of trustees. 

Optional Benefits. 

(14) At the time of his retirement, any contributor 
may elect to receive his benefits in a retirement allow- 
ance payable throughout life, or he may on retirement 
elect to receive the actuarial equivalent at that time of 
his annuity, his pension or his retirement allowance in 
a lesser annuity, or a lesser pension, or a lesser retire- 
ment allowance, payable throughout life with the provi- 
sion that : 

Option 1. If he dies before he has received in pay- 
ments the present value of his annuity, his pension or 
his retirement allowance as it was at the time of his 
retirement, the balance shall be paid to his legal repre- 
sentatives or to such person having an insurable interest 
in his life as he shall nominate by written designation 
duly acknowledged and filed with the board of trustees. 

Option 2. Upon his death, his annuity, his pension or 
his retirement allowance shall be continued throughout 
the life of and paid to such person having an insurable 
interest in his life as he shall nominate by written desig- 
nation duly acknowledged and filed with the board of 
trustees at the time of his retirement. 



15 

Option 3. Upon his death, one-half of his annuity, Option 3: 
his pension or his retirement allowance shall be con- 
tinued throughout the life of and paid to such person 
having an insurable interest in his life as he shall nomi- 
nate by written designation duly acknowledged and 
filed with the board of trustees at the time of his retire- 
ment. 

Option 4. Some other benefit or benefits shall be paid °P tion *■ 
either to the member or to such person or persons as he 
shall nominate, provided such other benefit or benefits, 
together with the lesser annuity or lesser pension or 
lesser retirement allowance, shall be certified by the 
actuary to be of equivalent actuarial value to his an- 
nuity, his pension or his retirement allowance and shall 
be approved by the board of trustees. 

Benefits of Teachers Now Retired. 

(k) All pensions payable prior to the month of Payments 

\ *j / i X. j jl from pension 

September, nineteen hundred and nineteen, by the State fund. 
under the provisions of chapter 268, P. L. 1914, shall, 
beginning with said month, be paid from the pension 
fund created by this article and all such pensions as 
are below four hundred dollars shall be increased to 
and be paid at the rate of four hundred dollars. 

(16) Should the Teachers' Retirement Fund by if retirement 
reason of insolvency or liquidation cease to pay in full 
the annuities granted and theretofore paid by said fund, 
there shall be paid out of the pension fund created by 
this article to persons who shall have been annuitants 
of said Teachers' Retirement Fund from a date prior to 
the first day of September, nineteen hundred and nine- 
teen, such part or all of such annuities as the said Teach- 
ers' Retirement Fund shall have ceased to pay; pro- Proviso. 
vided that neither all nor any part of the amount of 
any reduction in the annuity therefore payable by the 
said Teachers' Retirement Fund shall be paid out of the 
said pension fund, unless there is in effect a correspond- 
ing and proportionate reduction by the said Teachers' 
Retirement Fund in the annuity of, and payment thereof 
to, each and every person retired by the Retirement 
Fund ; provided, farther, that the board of trustees shall Proviso. 
be the sole judge as to whether the amount of any 
allowance which would thereby become payable out of 



i6 



the pension fund corresponds to the amount of a reduc- 
tion by the Teachers' Retirement Fund in the allowance 
of the same person due to the insolvency or liquidation 
of said fund. 



Actuarial 
tables pre- 
pared. 



Valuation of 
assets and 
liabilities. 



Periodical 
investigations 
by actuary. 



Use of tables. 



ACTUARIAL BASIS. 

252. ( i ) Immediately after the establishment of the 
retirement system, the actuary of the board of trustees 
shall make such investigation of the mortality service 
and compensation experience of the teachers of the 
State of New Jersey as he shall recommend, and the 
board of trustees shall authorize, for the purpose of 
determining the proper tables for the purposes of the 
system. On the basis of such investigation and recom- 
mendation the board of trustees shall adopt such tables 
and certify such rates as are required in paragraphs (a), 
(b), and (c) of sub-section (2) of this section. On 
the basis of such tables as the board of trustees shall 
adopt, the actuary, as soon as practicable, shall make a 
valuation of the assets and liabilities of the funds created 
by this article. 

(2) In the years nineteen hundred twenty-one and 
nineteen hundred and twenty-four, and once in every 
five-year period thereafter, the said actuary shall make 
an actuarial investigation into the mortality, service and 
compensation or salary experience of the members and 
beneficiaries of the retirement system, and shall make 
a valuation of the assets and liabilities of the various 
funds thereof, and upon the basis of such investigation 
and valuation the board of trustees shall : 

(a) adopt for the retirement system such mortality, 
service and other tables as shall be deemed necessary ; 

(b) certify the rates of deduction from compensa- 
tion computed to be necessary to pay the annuities au- 
thorized under the provisions of this article; and 

(c) certify the rates of contribution, expressed as a 
proportion of the compensation of members at various 
ages, which shall be made to the pension accumulation 
fund. 



17 

FUNDS CREATED, CONTRIBUTIONS THERETO AND PAY- 
MENTS THEREEROM. 

253. (1) The funds created are: (a) the annuity Six funds 
savings fund; (b) the annuity reserve fund; (c) the 
pension fund; (d) the pension accumulation fund; (e) 
the pension reserve fund; (f) the expense fund. 

Funds Derived from Members' Contributions. 

(2) The annuity savings fund shall be the fund in Annuity sav- 
which shall be accumulated deductions from the com- 
pensation of contributors. 

(3) Upon the basis of such tables as the board of ^°t"bie° n " 
trustees shall adopt, and regular interest, the actuary 

of the board of trustees shall determine for each con- 
tributor the proportion of compensation, which when 
deducted from each payment of his prospective earn- 
able compensation prior to his eligibility for service 
retirement and accumulated at regular interest until his 
attainment of the age of sixty- two (62) shall be com- 
puted to be sufficient to provide at that time an annuity 
equal to the pension then allowable under the provisions 
of this article for service rendered during his member- 
ship, and in case the said member is a new-entrant for 
such prior service as he both claimed and was allowed. 
The proportion of compensation shall be computed to 
remain constant until the member attains the age of 
sixty-two (62) years. The proportion computed for a 
contributor entering at the age of sixty-one (61) shall 
be applied to any contributor who has attained a greater 
age at the time of entrance into the retirement system. 

(4) The board of trustees shall certify to each em- Amount to be 
ployer and the said employer shall deduct from the com- SslT 
pensation of each member on each and every payroll P ensatlon - 
for each and every payroll period subsequent to the date 

upon which such certification becomes effective, the per 
centum of his earnable compensation so computed. But 
the board of trustees shall not certify, nor shall any em- 
ployer make, any deduction for annuity purposes from 
the compensation of a member who has attained the age • 
of sixty-two (62) and completed thirty-five (35) years 
of service, if such member elects not to contribute. 



i8 



Amount earn- 
able in pay- 
roll period. 



Deposit in 
single pay- 
ment. 



Redeposit. 



Accumulated 
deductions 
paid from 
annuity sav- 
ings fund. 



Fund from 
which annui- 
ties paid. 



( 5 ) In determining the amount earnable by a con- 
tributor in a payroll period, the board of trustees may 
consider the rate of compensation payable to such mem- 
ber on the first day of the payroll period as continuing 
throughout such payroll period, and it may omit deduc- 
tions from compensation for any period less than full 
payroll period if a teacher was not a contributor on the 
first day of the payroll period, and to facilitate the mak- 
ing of deductions it may modify the deduction required 
of any contributor by such an amount as shall not ex- 
ceed one-tenth of one per centum of the compensation 
upon the basis of which said deduction is to be made. 

(6) In lieu of any part of the deduction from com- 
pensation hereinbefore required, any new-entrant may 
deposit in the annuity savings fund by a single payment 
such an amount as will be sufficient to permit him to 
contribute the rate of contributions applicable to an 
earlier entrance age. In addition to the deductions 
from compensation hereinbefore required any contribu- 
tor may redeposit in a single payment an amount equal 
to the total amount which he withdrew therefrom as 
provided in this article, or he may deposit therein by a 
single payment an amount computed to be sufficient 
together with the retirement allowance otherwise pro- 
vided, to provide for him a total retirement allowance 
of one-half of his final salary at the age of sixty-two 
(62). Such additional amounts so deposited shall be- 
come a part of his accumulated deductions. 

(7) The accumulated deductions of a contributor 
withdrawn, as provided in this article, shall be paid out 
of the annuity savings fund. In the case of a with- 
drawal, an amount equivalent to the difference between 
the amount of the accumulated deductions calculated 
at regular interest and the amount of the accumulated 
deductions calculated by use of interest at the rate of 
three and one-half per centum per annum compounded 
annually shall be transferred to the expense fund. 

(8) The annuity reserve fund shall be the fund from 
which shall be paid all annuities and all benefits in lieu 
of annuities. Upon the retirement of a contributor his 
accumulated deductions shall be transferred from the 
annuity savings fund to said annuity reserve fund. 



i9 

FUNDS DERIVED FROM CONTRIBUTIONS FROM SCHOOL 
APPORTIONMENT FUND. 

PENSION FUND. 

(9) The pension fund shall be the fund in which Source of 
shall be accumulated the reserves for the payment of pen 
pensions to present-entrants; into which the moneys 
necessary for the payment of all other pensions with 

the exception of those payable to new-entrants shall be 
paid; and from which all pensions with the exception 
of those payable to new-entrants shall be paid. 

(10) The actuary, after making - the first valuation Actuary to 
required, shall determine the present value of the ?i?Sy ne 
liability on account of pensions to present-entrants then 
retired or to be retired. He shall then determine the 
percentage of the total compensation paid to all mem- 
bers for service during the preceding school year, which 

is equivalent to one-twenty-fifth of the said liability. 

(11) The State Comptroller shall pay annually, be- Annual pay - 
ginning with the year nineteen hundred and twenty, 

from the school apportionment fund into the pension 
fund the amount as certified to him by the board of 
trustees, which shall be equal to the per centum, deter- 
mined in accordance with this subsection and the sub- 
section immediately preceding, of the total compensa- 
tion paid to all members for service during the preced- 
ing school year. 

Each annual payment shall be at least three per increasing 
centum greater than the preceding annual payment. In paymer 
every case, the amount shall be sufficient, when com- 
bined with that in the fund to provide the pensions 
payable out of this fund during the year then current, 
and shall be equal to at least one-twenty-fifth of the 
liability on account of present-entrants now retired or 
to be retired. The State Comptroller shall continue Continuation 
such payments until the accumulated reserve in the ° payments - 
pension fund equals the present value, as computed by 
the actuary and approved by the board of trustees, of 
all pension payments thereafter payable on account of 
present-entrants, then retired or to be retired on a pen- 
sion as provided in this article. 



20 



Estimate of 
amount neces- 
sary. 



Payment. 



Future pay- 
ments to pen- 
sion fund. 



(12) To pay the pensions provided under subsections 
(15) and (16) of section two hundred and fifty-one, 
the board of trustees shall annually prepare an estimate 
of the amounts required therefor and the State Comp- 
troller shall pay from the school apportionment fund 
into the pension fund for this purpose the amounts 
required. 

(13) All moneys appropriated for the payment of 
pensions to public-school teachers under chapter 268, 
P. L. 19 14, for the fiscal year beginning July, nineteen 
hundred and nineteen, less the amount disbursed for 
said pensions during the months of July and August, 
shall, on the first day of September, one thousand nine 
hundred and nineteen, be paid by the State Treasurer 
into the pension fund. 



PENSION ACCUMULATION FUND. 



Pension 

accumulation 

fund. 



Payments on 
account of 
new-entrants. 



Aggregate 
amount. 



(14) The pension accumulation fund shall be the 
fund in which shall be accumulated the reserves neces- 
sary to pay all pensions to be granted to new-entrants. 

(15) In the month of July, nineteen hundred and 
twenty, for a period covering the ten months next preced- 
ing, and annually thereafter, covering the year next pre- 
ceding, the State Comptroller shall pay from the school 
apportionment fund into the pension accumulation fund 
on account of all new-entrants who were contributors 
for one or more months of such period immediately 
preceding, such amount as shall be certified by the board 
of trustees as necessary to provide thereby during their 
prospective active service the pension reserve required 
at the time of retirement for the disability or super- 
annuation pension herein provided. The amount for 
each teacher included in the aggregate amount so cer- 
tified shall be computed to bear a ratio to the salary 
earnable by such teacher during the period for which the 
amount is certified, which shall remain constant during 
his entire period of prospective active service and shall 
be based on such mortality and other tables as shall be 
adopted by the board of trustees and on regular interest. 



21 



PENSION RESERVE FUND. 

(16) The pension reserve fund shall be the fund aii pensions 
from which shall be paid all pensions, and all benefits, pension reserve 
in lieu of pensions, granted to new-entrants. Upon the 
retirement of a new-entrant an amount equal to his 

pension reserve fund shall be transferred to said fund 
from the pension accumulation fund. 

(17) Should any disability pension payable from Cancellation 
said fund be cancelled, the pension reserve thereon shall of disability 
thereupon be transferred from the pension reserve pension - 
fund to the pension accumulation fund. Should the 
pension of a disability beneficiary be reduced as a result 

of an increase in his earning capacity, the amount of the 
annual reduction in his pension shall be paid annually 
into the pension accumulation fund during the period of 
such reduction. 

EXPENSE FUND. 

(18) The expense fund shall be the fund from which Expense fund. 
the expense of the administration of the retirement 

system shall be paid exclusive of amounts payable as 
retirement allowances and as other benefits provided 
herein. 

(19) The board of trustees shall certify annually to Payment by 
the State Comptroller the amount required to defray expense fund, 
such expense in the ensuing fiscal year after making 
allowance for the estimated amounts to be received by 

the expense fund from the annuity savings fund, and 
the State Comptroller shall pay from the school appor- 
tionment fund into the expense fund the amount so 
determined. 

COLLECTION OF" CONTRIBUTIONS. 

Collection of Members' Contributions. 

254. (1) Each employer shall keep such records, Records of 
and, from time to time, furnish such information as 
the board of trustees in the discharge of its duties may 
require. 



22 



Relation to 
retirement 
system. 



Payment less 
reductions 
complete dis- 
charge. 



Deductions 
from salary 
certified. 



Failure by 
custodian of 
school moneys 
a default. 



Amount 
credited an- 
nuity savings 
fund. 



(2) Upon the employment of any teacher to whom 
this article may apply, he shall be informed by his em- 
ployer of his duties and obligations in connection with 
the retirement system as a condition of his employment. 
Every teacher accepting employment shall be deemed 
to consent and agree to any deductions from his com- 
pensation required herein and to all other provisions 
of this article. 

(3) Notwithstanding any other law, rule or regula- 
tion affecting the salary, pay, compensation, Other per- 
quisites or tenure of any teacher to whom this article 
applies, or shall apply, and notwithstanding that the 
minimum salary, pay, compensation or other perquisites, 
provided by law for any such teacher shall be reduced 
thereby, payment less said deductions shall be a full and 
complete discharge and acquittance of all claims and 
demands whatsoever for service rendered by such mem- 
ber during the period covered by such payment. 

(4) When a teacher is employed by a school district, 
the custodian of school moneys and, in other cases, his 
employer shall notify the board of trustees within ten 
days after the appointment of a teacher of such ap- 
pointment, and shall deduct the proportion of salary as 
certified by the board of trustees from the salary of such 
teacher as herein directed, and shall certify to the 
Treasurer of the State of New Jersey on account of 
each and every payroll a statement as voucher for the 
amounts deducted for annuity purposes at the rate cer- 
tified by the board of trustees, shall send a duplicate of 
such statement to the board of trustees, and shall trans- 
mit or credit to the said State Treasurer the amount 
thereof. Any failure on the part of the custodian of 
school moneys of any school district to comply with the 
provisions of the subsection shall constitute a default, 
and the State Board of Education may withhold school 
moneys from such school district until such default is 
made good. 

(5) The State Treasurer shall credit the annuity 
savings fund with each amount transmitted or credited 
as provided in the subsection immediately preceding, 
and he shall transmit to the board of trustees monthly, 
or at such less frequent intervals as the board of trus- 



23 

tees shall designate, a detailed statement of all amounts 
so paid in and credited by him to the annuity savings 
fund. 

The board of trustees shall cause each of such individual 
amounts so deducted to be credited in the annuity sav- credited, 
ings fund to an individual account of the member from 
whose compensation the deduction was made. 

Collection of Employers' Contributions. 

(6) Upon the basis of each actuarial determination Estimates 
and appraisal provided herein, the board of trustees nec^^for 
shall annually prepare and certify to the State Comp- eachfund - 
tr oiler an estimate of the amounts necessary to be paid 

from the school apportionment fund to the various 
funds for the ensuing fiscal year. 

(7) The State Comptroller, prior to the apportion- Deductions 
ment, on or before the first day of February, among the tfo f nment. por " 
several counties of the State of the funds devoted to 

the maintenance and support of a thorough and efficient 
system of free public schools, as provided in and by an 
act entitled "A supplement to an act entitled 'An act to 
establish a thorough and efficient system of free public 
schools, and to provide for the maintenance, support 
and management thereof,' approved October nineteenth, 
one thousand nine hundred and three," approved April 
twentieth, one thousand nine hundred and six, shall de- 
duct from the moneys so to be apportioned, in addition 
to any other sums to be deducted from said fund by 
virtue of the provisions contained in any law of this 
State, the amount certified to him by the board of trus- 
tees as necessary to make the payments to the various 
funds of the retirement system from the School Appor- 
tionment Fund as provided herein for the then ensuing 
school year, and he shall pay such amounts into the Payment 
various funds of the retirement system, on the first day ^system? 
of July following the certification. 

(8) If at any time no deductions shall have been if„ deduc- 
made as required by the subsection immediately pre- ££!££[ insuf . 
ceding, or if at any time the amount deducted shall not ficient - 

be sufficient to make the payments provided for herein, 
such payments shall be provided for by the Comptroller 
of the Treasury in making the then next deductions as 



2 4 



Appropriation 
for system. 



Meeting pen- 
sions previ- 
ously granted 



required herein, and shall be in addition to the sum 
certified to him by the board of trustees as necessary 
for the payments for the then ensuing school year. 

(9) To meet the expense of establishing and ad- 
ministering the retirement system created herein there 
is hereby appropriated from the school apportionment 
fund the sum of twenty-five thousand dollars 
($25,000). 

(10) To meet the cost of pensions granted under 
chapter two hundred and sixty-eight, Laws of nineteen 
hundred and fourteen, assumed herein, and the cost of 
such annuities granted by the Teachers' Retirement 
Fund which are assumed herein, and shall be payable 
on or after the first day of July, nineteen hundred and 
nineteen, there is hereby appropriated from the school 

Appropriation, apportionment fund the sum of two hundred and fifty 
thousand dollars. The State Comptroller shall deduct 
such sum from the school apportionment fund in the 
same manner as provided by chapter sixty-five of the 
Laws of nineteen hundred and nine, and shall pay said 
sum into the pension fund created herein. 



ADMINISTEATlON. 



Operation of 
system vested 
in board of 
trustees. 



Functions 
of trustees. 



Membership : 



Commissioner 
of Education ; 
Proviso. 



Board of Trustees. 

255. (1) The general administration and responsi- 
bility for the proper operation of the retirement system 
and for making effective the provisions of this article 
is hereby vested in a board of trustees, which shall be 
organized immediately after the passage of this act. 
The. said board shall from time to time establish rules 
and regulations for the administration and transaction 
of its business and for the control of the funds created 
herein, and shall perform such other functions as are 
required for the execution of the provisions of the re- 
tirement system. 

(2) The membership of the board of trustees shall 
consist of the following: 

(a) The Commissioner of Education of the State of 
New Jersey; provided, that the commissioner may ap- 
point the assistant commissioner, who acts in his place 
during his absence, to serve in his stead. 



25 

(b) The Treasurer of the State of New Jersey. state Treas- 

(c) One trustee appointed by the Governor of the Appointed by 
State of New Jersey to serve until the first day of Governor; 
September, nineteen hundred and twenty-one. His suc- 
cessor shall be appointed each for a term of three years. 

(d) Three trustees elected from among the mem- Three 

bers of the retirement system, one to serve for one year, teachers ' term - 
one to serve for two years and one to serve for three 
years from the first day of November following their 
election. One of such trustees shall be a resident of Residence. 
and employed in either the county of Hudson, Essex or 
Bergen; one a resident of and employed in either the 
county of Passaic, Sussex, Warren, Morris, Union, 
Hunterdon, Somerset, Middlesex, Mercer or Mon- 
mouth; and the third a resident of and employed in 
either the county of Ocean, Burlington, Camden, Glou- 
cester, Salem, Cumberland, Atlantic or Cape May. 
Their successors shall be elected for a term of three Election of 
years from among the members of the retirement successors - 
system. 

(e) One trustee, not a teacher nor an officer of the Nonrepre- 
State, elected by the other trustees, to serve until the sentatlve - 
first day of January, nineteen hundred and twenty-one, 
whose successor shall be elected in the same manner for 

a term of three years. 

A vacancy occurring in the board of trustees shall be vacancy, 
filled for the unexpired term in the same manner as 
herein provided for regular appointment or election. 

(3) Until the election of the three trustees from Pending 
among the members of the retirement system the Com- teadieArus- 
missioner of Education, the State Treasurer and the tees " 
trustee appointed by the Governor, are empowered to 
perform the duties of the board of trustees. All rules 

and regulations adopted by them shall be subject to 
change by the entire board when the membership of 
such board shall be completely filled. 

(4) An annual convention of the retirement system Annual con- 
shall be held at the State House in Trenton, at twelve 
o'clock, noon, on the second Saturday in October each 

year, beginning with the year nineteen hundred and Purposes of 
nineteen, for the purpose of electing members of the conventlon - 
board of trustees of the retirement system, and receiv- 



26 



Delegates. 
Organization. 



Basis of 
representation. 



Proviso. 

Majority vote 
to determine. 



Xotice given. 



County meet- 
ings. 



Credentials 
of delegates. 



Filling 
vacancy. 



Quorum. 



Oath of 
trustees. 



ing the report of said board of trustees and for the 
transaction of such other business as may properly be 
within its jurisdiction. Said convention shall be com- 
posed of delegates from each county in the State, 
selected as hereinafter provided. Said convention shall 
be called to order by a member of the board of trustees, 
designated by said board, and shall organize by the elec- 
tion of a chairman and a secretary. Each county shall 
be entitled to be represented in such convention by one 
delegate for each two hundred members of the retire- 
ment system in said county and one delegate for any 
fraction over one hundred; provided, that each county 
shall be entitled to at least one delegate. Said delegate 
shall be elected by the vote of a majority of the mem- 
bers of the retirement system voting at a meeting held 
for the purpose of electing such delegates. Said meet- 
ing for the election of delegates shall be held at such 
convenient place as shall be selected by the county 
superintendent of schools. Notice of the time and place 
of said meeting shall be issued by said county superin- 
tendent at least ten days before the date of said meeting. 
Said meeting shall organize by the election of a chair- 
man and secretary. Said secretary shall, within five 
days after said meeting, forward to the board of trus- 
tees of the retirement system a certificate containing the 
names and addresses of the delegates elected to the 
annual convention, and shall furnish the delegates 
elected with a certificate of their election. In case of a 
vacancy in the delegation from any county, the remain- 
ing delegates from such county may fill such vacancy 
by appointing a member in said county, who shall pos- 
sess the qualifications hereinbefore prescribed for dele- 
gates to such convention. A majority of all of the dele- 
gates entitled to seats in said convention shall constitute 
a quorum for the transaction of business. 

Administrative Staff and Procedure. 

(5) Each member of the board of trustees shall, 
upon his appointment or election, take an oath of office 
that, so far as it devolves upon him, he will diligently 
and honestly administer the affairs of the said board, 
and that he will not knowingly violate or willingly per- 



27 

mit to be violated any of the provisions of law applicable 
to the retirement system. Such oath shall be subscribed 
to by the member making it, and certified by the officer 
before whom it is taken, and shall be immediately filed 
in the office of the Secretary of State. 

(6) Each trustee shall be entitled to one vote in the voting by 
board. Four votes shall be necessary for a decision by trustees - 
the trustees at the meeting of said board. The board 

of trustees shall keep a record of all of its proceedings, Records, 
which record shall be open to public inspection. 

(7) The board of trustees shall elect from its mem- Chairman, 
bership a chairman, shall engage such actuarial and oftTuTt'ees '' 
other technical service, and shall appoint such employees 

as may be necessary to transact the business of the re- 
tirement system. The actuary shall be the technical Duties of 
advisor of the board of trustees on matters regarding ac uar ' 
the operation of the funds created by the provisions of 
this article, and shall perform such other duties as are 
required in connection therewith. The Attorney-Gen- Legal advisor, 
eral of the State of New Jersey shall be the legal ad- 
visor of the board of trustees. 

(8) The actuary of the board shall recommend and Data as to 
the board of trustees shall keep in convenient form such 

data as shall be necessary for actuarial valuation of the 
various funds of the retirement system. 

(9) The board of trustees shall publish annually a Annual 
report showing a valuation of the assets and liabilities report 
of the funds, certifying as to the accumulated cash and 
securities of the funds and giving an account of the 
operation of the system. The said board shall submit 

said report to the Governor and shall furnish copies 
thereof to the office of the State Department of Edu- 
cation, the State Treasurer and to each employer for 
the use of the members and the public. 

(10) The members of the board of trustees shall Nocompensa- 
serve without compensation, but shall be reimbursed met.' 
from the expense fund for any necessary expenditures. 

No teacher shall suffer loss of salary or wages through 
serving on the board of trustees. Compensation for all 
other personal service to the retirement system shall 
be fixed by the board. 



28 



Office of 
board of 
trustees. 



Management, 
care, invest- 
ment of vari- 
ous funds. 



Interest. 



Additional 
amount needed 
to meet in- 
terest. 



Custodian of 
various funds. 



Ready money 
on deposit. 



(n) The board of trustees shall establish itself in 
an office for the administration of the retirement sys- 
tem in such city as it shall consider most suitable for 
the transaction of its business. 

Management of Funds. 

(12) The board of trustees shall be the trustees of 
the several funds created by this article and shall have 
full power to invest the same, subject to all the terms, 
conditions, limitations and restrictions imposed by law 
upon investment of sinking funds in the making and 
disposing of their investments; and, subject to like 
terms, conditions, limitations and restrictions, said trus- 
tees shall have full power to hold, purchase, sell, assign, 
transfer or dispose of any of the securities and invest- 
ments in which any of the funds created herein shall 
have been invested, as well as of the proceeds of said 
investments and any moneys belonging to said funds. 

(13) The board of trustees shall annually allow 
regular interest on the mean amount for the preceding 
year in each of the funds, with the exception of the 
expense fund. The amount so allowed shall be due and 
payable to said funds, and shall be annually credited 
thereto by the board of trustees, from the interest and 
other earnings on the moneys of the retirement system. 
Any additional amount required to meet the interest 
on the funds of the retirement system shall be included 
in the amount certified to the State Comptroller as neces- 
sary to make the payments to the various funds of the 
retirement system from the school apportionment fund 
for the ensuing school year. 

(14) The Treasurer of the State of New Jersey shall 
be the custodian of the several funds. All payments 
from said funds shall be made by him only upon voucher 
signed by the chairman and countersigned by such other 
person as may be designated by the board of trustees. 

(15) For the purpose of meeting disbursements for 
pensions, annuities and other payments there may be 
kept an available fund, not exceeding ten per centum 
of the total amount in the several funds of the retire- 
ment system, on deposit in any bank in this State, or- 
ganized under the laws thereof, or under the laws of 



investments. 



29 

the United States or in any trust company incorporated 
by any law of this State; provided, that the sum de- Proviso, 
posited in any one bank or trust company shall not ex- 
ceed twenty-five per centum of the paid-up capital and 
surplus of said bank or trust company. 

(16) Except as herein provided, no trustee and no Trustees not 
employee of the board shall have any interest, direct interest in 
or indirect, in the gains or profits of any investment 
made by the board of trustees, nor as such directly or 
indirectly receive any pay or emolument for his serv- 
ices. And no trustee or employee of the board shall, 
directly or indirectly, for himself or as an agent in any 
manner use the same, except to make such current and 
necessary payments as are authorized by the board of 
trustees ; nor shall any trustee or employee of the board 
become an endorser or surety or become in any manner 
an obliger for moneys loaned by or borrowed of the 
board of trustees. 

OTHER PROVISIONS. 

State Supervision. 

2s6. (1) The various funds of the retirement sys- state super- 

1 11 1 1 - 1 •• r 1 r~\ -r\ Vision 01 

tern shall be subject to the supervision of the State De- funds. 
partment of Insurance. 

Exemption from Taxation. 

(2) The right of a teacher to a pension, an annuity, Exemption 
or a retirement allowance, to the return of contributions, 

any benefit or right accrued or accruing to any person 
under the provisions of this article, and the moneys in 
the various funds created hereunder, are hereby ex- 
empt from any State or municipal tax, and shall not be 
subject to execution garnishment, attachment or any 
other process whatsoever, and shall be unassignable 
except as in this act specifically provided. 

Protection Against Fraud. 

(3) Any person who shall knowinsrlv make anv False state- 

r 1 . L A 1 11 r 1 • r • 1 r 1 •/• i merits, etc., 

ialse statement, or shall falsify or permit to be falsified a misdemeanor, 
any record or records of this retirement system in any 
attempt to defraud such system as a result of such act, 
shall be guilty of a misdemeanor, and shall be punish- 



3o 



Correction of 
errors. 



Repealer. 



A.s to. validity 
of act. 



able therefor under the laws of the State of New Tersey. 
Should any change or error in records result in any 
employee or beneficiary receiving from the retirement 
system more or less than he would have been entitled 
to receive had the records been correct, then, on the 
discovery of any such error, the board of trustees shall 
correct such error, and, so far as practicable, shall 
adjust the payments in such a manner that the actuarial 
equivalent of the benefit to which he was correctly enti- 
tled shall be paid. 

2. All acts and parts of acts inconsistent with the 
provisions of this act, or any portion of the act to which 
this act is an amendment, which are inconsistent with 
the provisions of this act are hereby repealed. If any 
section, clause or part of this act shall be declared un- 
constitutional by the decision of any court of competent 
jurisdiction, such decision shall not invalidate or destroy 
the force or purpose of the remainder thereof. 

3. This act shall take effect immediately. 
Approved April 10, 191 9. 



CHAPTER 81, LAWS OF 1919. 

An Act to amend "An act to amend an act entitled 'An act to 
establish a thorough and efficient system of free public schools, 
and to provide for the maintenance, support and management 
thereof/ approved October nineteenth, one thousand nine hun- 
dred and three," approved May seventh, one thousand nine 
hundred and seven. 



Section 221 
amended. 



Be it enacted by the Senate and General Assembly 
of the State of New Jersey: 

1. Section two hundred and twenty-one of article 
XXV of the act to which this act is an amendment is 
hereby amended to read as follows : 



3i 
22i. I. Any member of the now existing Teachers' Teachers 

1X1*1 V Wit 11" 

Retirement Fund shall be released from membership in draw from 
said fund and from any obligation for the payment of 
dues or deduction from salary for the support of said 
fund, and the board or body by which he or she is em- 
ployed shall cease to deduct the percentages as hereto- 
fore deducted from his or her salary; provided, such Proviso, 
member shall, at any time after the passage of this act, 
give written notice duly witnessed declaring his or her 
withdrawal from membership in the Teachers' Retire- 
ment Fund, and waiving all his or her rights, benefits 
and privileges thereunder, in triplicate, and in substan- 
tially the following form : 



Notice of Withdrawal. 

To the Board of Trustees of the Teachers' Retirement 
Fund. 

This shall serve as a notice that I hereby withdraw 
from membership in the Teachers' Retirement Fund, 
and that I hereby waive all my rights, benefits and privi- 
leges in and to said fund by virtue of my membership in 
and contributions to the Teachers' Retirement Fund. 

Date Signed 

Witnessed by Address 

Address School 

One copy of such notice shall be delivered to the board 
of trustees of the Teachers' Retirement Fund, at the 
office of the Teachers' Retirement Fund, and one copy 
to the board of trustees of the Teachers' Pension and 
Annuity Fund, and the other copy to the board or body 
by which he or she is employed. In case such delivery 
is not made in person or by agent, it shall be deemed to 
have been made when said notice is mailed properly 
addressed to the party to which such delivery should 
be made, postpaid and by registered mail. Such notice 
shall become effective and membership in the Teachers' 
Retirement Fund shall cease on the first day of the 
month next following such delivery of such notice. 

II. No person appointed as a teacher in this State 
after the passage of this act shall be required to become 



Form of 
notice of 
withdrawal. 



Three copies 
delivered to 
specified 
officers. 



Notices may 
be mailed. 



When effec- 
tive. 



Membership 
not obligatory. 



32 

a member of the Teachers' Retirement Fund, but such- 
person may do so if he or she so elects. 

2. This act shall take effect immediately. 

Approved April 10, 19 19. 






LIBRARY OF CONGRESS 



021 300 366 5 



